Why is Dolby Laboratories, Inc. ?
1
Company has a low Debt to Equity ratio (avg) at times
2
Poor long term growth as Net Sales has grown by an annual rate of 2.52% and Operating profit at 3.12% over the last 5 years
3
Flat results in Jun 25
- PRE-TAX PROFIT(Q) At USD 54.97 MM has Fallen at -33.05%
- NET PROFIT(Q) At USD 45.61 MM has Fallen at -31.39%
- CASH AND EQV(HY) Lowest at USD 1,507.67 MM
4
With ROE of 10.42%, it has a attractive valuation with a 2.80 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -15.35%, its profits have risen by 13% ; the PEG ratio of the company is 2.7
5
Below par performance in long term as well as near term
- Along with generating -15.35% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Dolby Laboratories, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Dolby Laboratories, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Dolby Laboratories, Inc.
-26.15%
-0.59
24.42%
S&P 500
16.12%
0.70
20.15%
Quality key factors
Factor
Value
Sales Growth (5y)
1.22%
EBIT Growth (5y)
-4.24%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.29
Sales to Capital Employed (avg)
0.52
Tax Ratio
18.15%
Dividend Payout Ratio
50.46%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
17.26%
ROE (avg)
10.34%
Valuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
2.25
EV to EBIT
19.17
EV to EBITDA
13.95
EV to Capital Employed
2.73
EV to Sales
3.83
PEG Ratio
NA
Dividend Yield
2.04%
ROCE (Latest)
14.26%
ROE (Latest)
9.98%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Movement
6What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 65.16%
DIVIDEND PER SHARE(HY)
Highest at USD 2.37
RAW MATERIAL COST(Y)
Fallen by 1.19% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 5.15 times
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 2.37 times
Here's what is working for Dolby Laboratories, Inc.
Dividend per share
Highest at USD 2.37 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 65.16% and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Inventory Turnover Ratio
Highest at 5.15 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 1.19% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 26.81 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Dolby Laboratories, Inc.
Debtors Turnover Ratio
Lowest at 2.37 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






